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Gold in Asia heads for biggest quarterly advance in 25 years

Gold is heading for the biggest quarterly advance since Sept 1990 as demand for haven assets surged to make the metal this year's best performing commodity.

PHOTO: ST FILE

[SINGAPORE] Gold is heading for the biggest quarterly advance since Sept 1990 as demand for haven assets surged to make the metal this year's best performing commodity.

Bullion for immediate delivery rose as much as 0.3 per cent to US$1,228.50 an ounce, and traded at US$1,226.97 at 8:43 am in Singapore, according to Bloomberg generic pricing. The metal is up 16 percent this quarter, the first quarterly rise since June 2014.

Gold rallied this year as it cemented its status as a store of value amid financial market turbulence and concern about global growth, which led to speculation that the Federal Reserve would pause on tightening monetary policy in the US.

Traders now see no chance of a change in policy next month and only a 54 per cent likelihood of an interest rate increase by December. Higher borrowing costs curb the appeal of bullion against interest-bearing assets.